Friday, January 20, 2017

The chinese growth is decelerating – The Dauphiné Libéré

china’s growth has never been so low since 1990. While in 2015 it reached 6.9 percent, it stands at 6.7% for 2016, and forecasts for 2017 does not announce the best. In question : the slowing of industrial production. It only grew 6 % in 2016, while it rose a further 10% in 2015. The global demands in below expectations and the rising price of the local labour force have resulted in a net decline in exports, -7,7 % ; exports yet the pillars of this economy.

The old recipes of recovery skate

What is the strategy on the side of Beijing to stop this decline ? “The swelling of credits “, says Louis Kuijs of the firm, Oxford Economics. This swerve of the credit, favored by rate-accommodating, has fuelled a property boom but also a rise in the price of apartments in the big cities. In parallel, the government has stepped up its public expenditure in infrastructure in order to avoid a landing brutal economic. The asian giant is also trying to boost its domestic consumption. One of the axes to take up the slack of export decline. He also tries to boost its growth thanks to new technologies, and the restructuring of State companies and services. The latter accounted for 51.6% of the GDP in 2016 : more than half of the economy.